Buying a Property in Wife’s Name: Benefits

Home buying is a major decision of your life. Therefore, you need to carry out a lot of online as well as offline research. For few buying a home is an investment. However, few purchase it as a dream asset. In the earlier days, generally, a male member of the family is used to buy the property in his name. Things have, however, changed. With the increasing concept of equality, the tax benefits, or just as a gesture of love; men these days prefer buying a property in wife’s name. Men now love seeing the sense of pride and happiness on their wife’s face.

There are a number of exclusions and concessions available for women in the real estate market. As investing in a property for many means investing lifetime savings, it is better to be careful about every single factor accompanying the decision. But if you are wondering how purchasing a home in spouse’s name can be helpful; let’s discuss some of the benefits of purchasing a home in spouse’s name. As an initiative is to empower women and to make the financial status of women better multiple benefits were declared to incentivise women property owners.

Buying a Property in Wife’s Name: Benefits

1. Tax Benefits

You may avail of a number of tax benefits only when a woman approaches for a home loan. Your wife can have the benefit of the tax, only if she has a separate and legitimate source of income. If the property is a self-occupied one then the deduction towards interest is up to Rs 1.5 lakh for the financial year (FY). Besides, if the said property is on rent then home loan interest rate can be claimed as deduction for the net rental value.

2. Buying a Property in Wife’s Name: Stamp Duty Concession

In many states stamp duty is lower for women. Hence, if you are buying a property in your wife’s name you may save up to 1-2 percent of stamp duty while listing the property. For instance, a woman in New Delhi has to pay around 4% stamp duty as compared to men who need to pay 6%. On the other hand, if the property is of joint-ownership by man and woman in that case, buyers have to pay around 5 % of stamp duty. In Haryana, a man has to pay 6 percent stamp duty in rural areas and 8 % in urban. However, women need to pay 6 percent stamp duty in urban and 4 percent in the rural areas.

3. Cheaper Home Loan

The majority of banks in India offer discounts on home loan interest rates to women as compared to men. However, this varies from bank to bank. At times the difference between the two may seem to be nominal. However, when the amount of loan is high, it is undeniably going to make a big impact.

4. Wealth Tax

As far as wealth tax is concerned, the property owned by the spouse is treated as net wealth. Consequently, registering property in the name of the wife isn’t as much as necessary. If you intend to avail the advantage, it would be best if the husband gifts money to the wife to purchase the dream home. If, the husband possesses a number of assets then, registering the home in spouse’s name will help to lessen his wealth tax accountability.

5. The Feeling of Equality

Giving your partner a sense of equality is very important. Getting the property in your wife’s name is possibly the best way to express your love for her. This undeniably sweetens your relationship. The wife can also enjoy a tax rebate if she is a co-applicant of the home loan. Well, to enjoy the lady should have a legal source of income. She should meet the Home loan norms.

This blog aims to help you understand the benefits of a mutually owned property with your spouse or buying property in your spouse’s name. There are a range of benefits for buying a house on your wife’s name. Besides, this is considered as one of the most financially smart moves. So go ahead!